Domestic shares slumped on Friday, led by steep selling in banks stocks. The Nifty closed below the crucial 14,400 mark. Global stocks corrected as investors locked profits after a recent rally that was driven by hopes of a massive US economic stimulus plan by incoming President Joe Biden.
The S&P BSE Sensex, tumbled 746.22 points or 1.5% at 48,878.54. The Nifty 50 index dropped 218.45 points or 1.5% at 14,371.90.
Index heavyweight Reliance Industries fell 2.30% to Rs 2049.65 ahead of Q3 results today.
The broader market tumbled. The S&P BSE Mid-Cap index fell 1.19% while the S&P BSE Small-Cap index slipped 1.04%.
Sellers outnumbered buyers. On the BSE, 979 shares rose and 2,005 shares fell. A total of 133 shares were unchanged.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 9,74,95,558 with 20,89,460 deaths. India reported 1,88,688 active cases of COVID-19 infection and 1,53,032 deaths while 1,02,83,708 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
Numbers to Track:
In the foreign exchange market, the partially convertible rupee appreciated to 72.9750 compared with its previous closing of 72.995.
The yield on 10-year benchmark federal paper fell to 5.939% from its previous closing of 5.956%.
MCX Gold futures for 5 February 2021 settlement fell 0.95% to Rs 48,980.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, rose 0.06% to 90.19.
In the commodities market, Brent crude for March 2021 settlement fell $1.21 to $54.89 a barrel. The contract rose 0.04% to settle at $56.10 in the previous trading session.
Global Markets:
The US Dow Futures were down 260 points, indicating a weak opening in the US market today.
Shares in Europe and Asia tumbled on profit selling on Friday. The European Central Bank kept interest rates unchanged on Thursday but said it stands ready to act as coronavirus infection rates rise across the euro zone, leading to renewed lockdown measures.
Japan's core consumer prices slumped in December at the fastest annual pace in a decade. The nationwide core consumer price index (CPI), which includes oil but excludes fresh food costs, fell 1% in December from a year earlier, government data showed.
In US, the S&P 500 and Nasdaq closed at record highs on Thursday, propelled by optimism about more pandemic relief under the Biden administration to support the economy.
Investors are watching if President Joe Biden can get his proposed $1.9 trillion coronavirus relief bill through Congress. House Speaker Nancy Pelosi said Thursday the chamber is ready to pass the bill in the first week of February.
Biden released details of his COVID-19 plan on his first full day in office, including 10 executive orders and his intent to use the Defense Production Act to ramp up protective equipment production. Biden will seek to accelerate the rollout of vaccines by providing more local and state funding, creating more vaccination sites and launching a national education campaign.
Buzzing Segment:
The Nifty Bank slumped 3.17% to 31,167.25. The index fell 4.23% in two sessions.
Bandhan Bank (down 7.87%), RBL Bank (down 7.1%), Axis Bank (down 4.63%), Bank of Baroda (down 3.87%), State Bank of India (down 3.8%), Federal Bank (down 3.74%), IndusInd Bank (down 3.55%), ICICI Bank (down 3.39%), Punjab National Bank (down 3.09%), HDFC Bank (down 2.05%), Kotak Mahindra Bank (down 1.48%) and IDFC First Bank (down 0.4%) tumbled.
Earnings Impact:
JSW Steel fell 4.37%. The steel major's consolidated net profit jumped nearly 13 times to Rs 2681 crore in Q3 December 2020 from Rs 211 crore in Q3 December 2019. Revenue from operations grew by 21% to Rs 21,859 crore in Q3 December 2020 from Rs 18,055 crore in Q3 December 2019. The company improved its average capacity utilization level to 91% in Q3 December 2020 from 86% in Q2 September 2020. JSW Steel's saleable steel sales declined by 5% quarter on quarter to 3.95 million tonnes in Q3 December 2020. Domestic sales volume stood at 3.48 million tonnes, increasing 16% quarter on quarter and 13% year on year. The company said it calibrated its export volumes to 12% of total sales at 0.47 million tonnes.
SBI Life Insurance Company slipped 2.01% after life insurer's net profit declined by 40.3% to Rs 232.85 crore on a 68.3% rise in total income to Rs 26,551.90 crore in Q3 FY21 over Q3 FY20. While the company's net premium income improved by 17.7% to Rs 13,766.49 crore, net income from investments surged to Rs 12,776.91 crore in Q3 December 2020 over Q3 December 2019. Profit before tax in Q3 FY21 stood at Rs 233.08 crore, down by 40.9% from Rs 394.91 crore in Q3 FY20.
Biocon tumbled 10.89% after the company's consolidated net profit fell 16.9% to Rs 169 crore on 8% rise in revenue from operations to Rs 1,851 crore in Q3 FY21 over Q3 FY20. EBITDA declined by 11% to Rs 427 crore in Q3 December 2020 from Rs 480 crore in Q3 December 2019. EBITDA margins was at 23% as on 31 December 2020 as against 27% as on 31 December 2019. Revenue from Generics was Rs 561 crore (down 3% YoY), revenue from Biosimilars was Rs 769 crore (up 11% YoY) and revenue from Research services was Rs 585 crore (up 13% YoY). Meanwhile, Biocon said that Dr. Christiane Hamacher, has stepped down as the managing director of Biocon Biologics, a subsidiary of the company, and has also ceased to be a member of the board of directors of Biocon Biologics, effective from 20 January 2021.
JK Tyre & Industries surged 17.69% after the company's consolidated net profit surged to Rs 230.66 crore in Q3 December 2020 over a net profit of Rs 11.65 crore in Q3 December 2019. Consolidated net sales jumped 25.9% to Rs 2769.28 crore in Q3 FY21 as against Rs 2199.80 crore in Q3 FY20. EBITDA doubled to Rs 507 crore in Q3 December 2020. Profit before tax was at Rs 342.97 crore in Q3 December 2020 as against Rs 23.31 crore in Q3 December 2019.
Cyient surged 18.8% after the IT firm's net profit rose 13.8% to Rs 95.40 crore on a 4.1% increase in revenue to Rs 1,044.30 crore in Q3 FY21 over Q2 FY21. In dollar terms, consolidated revenue stood at $141.40 million for the quarter; up 4.7% quarter-on-quarter (Q-o-Q) and down 8.9% year-on-year (Y-o-Y). In constant currency, revenue was up 4.1% Q-o-Q.
Multi Commodity Exchange of India (MCX) fell 0.41%. MCX's consolidated net profit jumped 29.2% to Rs 71.80 crore on 13% surge in net sales to Rs 100.90 crore in Q3 December 2020 over Q3 December 2019. Consolidated profit before tax (PBT) soared 15.3% to Rs 67.59 crore in Q3 December 2020 as against Rs 58.62 crore in Q3 December 2019. EBITDA for the quarter ended 31 December 2020 jumped 17% to Rs 73.45 crore from Rs 62.67 crore over the corresponding quarter ended 31 December 2019. For the quarter ended 31 December 2020, the EBITDA margin stood at 58% and while PAT margin was at 57%.
SRF tumbled 6.37% after the company's consolidated net profit fell 5.3% to Rs 324.73 crore on 17.8% surge in net sales to Rs 2,129.43 crore in Q3 December 2020 over Q3 December 2019. Consolidated profit before tax (PBT) soared 72.7% to Rs 443.23 crore in Q3 December 2020 as against Rs 256.58 crore in Q3 December 2019. Consolidated Earnings before Interest and Tax (EBIT) jumped 42% to Rs 479 crore in Q3 FY21 from Rs 337 crore in Q3 FY20 (when compared with CPLY). Net of one-time tax adjustments in CPLY, the consolidated PAT soared 46% to Rs 324 crore in Q3 December 2020 over Rs 221 crore in Q3 December 2019.
Indian Energy Exchange (IEX) fell 3.26%. The company's consolidated net profit grew by 39.5% to Rs 58.14 crore on 42.8% rise in net sales to Rs 85.23 crore in Q3 December 2020 over Q3 December 2019. The company's consolidated profit before tax stood at Rs 75.74 crore in Q3 December 2020, 43.8% higher than Rs 52.66 crore in the same period last year. Consolidated EBITDA stood at Rs 80.5 crore in quarter ended December 2020, rising 41.8% from Rs 63.2 crore in the corresponding period last year. The energy exchange said it delivered the most robust quarterly performance till date.
Supreme Petrochem tumbled 4.67%. The company's net profit surged to Rs 171.62 in Q3 FY21 from Rs 2.07 crore Q3 FY20. Net sales rose jumped 50% to Rs 928.79 crore in the third quarter from Rs 619.08 crore in the same period last year. Total expenditure was Rs 690.28 crore (up 13.2% YoY), interest payments were Rs 2.49 crore (up 24.5% YoY) and depreciation costs were Rs 10.05 crore (up 7% YoY) in Q3 FY21. Profit before tax in Q3 December 2020 stood at Rs 233.32 crore, significantly higher as compared to Rs 2.68 crore in Q3 December 2019.
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